Cases that can't wait till tomorrow
ISRO'S HUGE SUCCESS – NOT IN SPACE BUT IN AAR
Income tax – Leasing of navigation transponder capacity by non-resident – Payment is only for deriving the benefit of satellite navigation capacity and not use of equipment – Not liable to tax under IT Act or Indo-UK DTAA - AAR
While scientists of ISRO were moonstruck at Sriharikota, their lawyers were fighting it out in the AAR and as of now ISRO is on a winning streak and nothing goes wrong.
ISRO entered into an agreement with Inmarsat Global Limited, UK for leasing of the Inmarsat navigation transponder capacity for its GAGAN TDS project to be carried out in India along with AAI. Under this contract, the applicant has taken on lease the space segment capacity consisting of L1 & L5 transponder of “Inmarsat 4th Generation Satellite”. This capacity is utilized through data commands sent from a ground station set up by the applicant. In terms of the contract the applicant pays a fixed annual charge regardless of the actual use of transponder capacity.
It approached the Authority for Advance Rulings with two questions ... See Breaking News
Non-resident Co - liaison offices in India - Even if company does not earn any income, fringe benefits paid to employees are liable to FBT in India: Advance Ruling
THE Fringe Benefit Tax (FBT) which was born in Finance Act, 2005 appears to be walking through various judicial fora unscarred and victorious. It was levied by Mr P Chidambaram, in addition to the Income Tax. In the latest ruling, the Authority for Advance Ruling has held that even a non-resident company keeping liasion offices in India and not earning any income as per the RBI's conditional approval, is also liable to pay FBT if it is providing fringe benefits to its employees.
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